Copyright 2023 HRCI. The DOL review and anticipated announcement represent a quick turnaround, given the previous update to overtime rules implemented in 2019 delivered the first substantive changes enacted since 2004. The services of an appropriate professional should be sought regarding your individual situation. An official website of the United States government. OIRA is the White House office responsible for reviewing regulations and proposed regulations before they are publicly released and generally takes 30-90 days for this review, indicating ICE is on target to issue their proposal in July. Please purchase a SHRM membership before saving bookmarks. However, Schreter said, "I don't think they're going to give up on that.". Although the DOL will almost certainly grant employers several months of lead-up time before implementing the new threshold, understanding the potential impact of a dramatic increase now will help employers adjust in the future. When the economy is unstable, employers are faced with difficult decisions around staffing, pay and benefits. Procedures on voluntary recognitionof unions. The US Department of Labor (DOL) now intends to propose new Fair Labor Standards Act (FLSA) overtime rules this October, six months later than originally planned. Before sharing sensitive information, make sure youre on a federal government site. Jan 23, 2023 | Neil Reichenberg, HRCI Contributing Writer. $('.container-footer').first().hide(); The .gov means its official. While this aspect of the exemption rules is not anticipated to change with the 2022 proposed rule changes, the duties test is important to remember when considering the classification of a particular role. The DOL's December agenda appears to be the first real step in that direction, announcing it will propose an update in . According to DOL, the 40th percentile equated to $921 per week in 2013 and will be about $970 when the rule is . "If there is a significant increase in the salary-basis level for the executive, administrative and professional exemptions, this change will require employers to identify and . The California standards require that more than 50 percent of the employee's time be spent solely on performing exempt duties in orderto be classified as exempt, he noted. In the Fall 2021 Regulatory Agenda, WHD announced their intention to move forward with the NPRM with the goal to update the salary level requirement of the section 13(a)(1) exemption [under the FLSA].. "Some commentators, though, believe that the administration may go the distance this time and look toward conforming the federal rules to more closely reflect the California standards," he said. The DOL plans to make the changes effective in 2023. Although there are no legal implications regarding the administration's failure to issue the agenda in a timely manner, there are important considerations for the regulated community. . Minimum Wages Are On the Rise in Several States. Agendas are generally released in the fall and spring and set target dates for each agency and sub-agencys regulatory actions for the coming year. Many unions and other worker advocates believe the DOL should match or exceed the $921 salary level of the 2016 proposed rule, with several groups demanding the salary level be set at $1,000 per week. Digital platform companies like Uber, Lyft, Instacart, and DoorDash are waging increasingly aggressive campaigns to erode long-standing labor rights and consumer protections in states across the country. Despite relying on the labor of millions of workers to provide their services, platform companies have established a business model on the premise that they employ no one. However, Section 13(a)(1) of the FLSA provides an exemption from overtime pay for individuals employed as bona fide executive, administrative, and professional employees and who receive pay on a salary basis of not less than $684/week. That final rule took effect on January 1, 2020. The proposed rule will advise businesses on implementing the exemption of bona fide executive, administrative, and professional employees from the minimum wage and overtime requirements of the Fair Labor Standards Act (FLSA). Different workweeks may be established for different employees or groups of employees. Starting in June 2020, employees were required to return to work onsite full-time. just days before it was set to take effect. if(currentUrl.indexOf("/about-shrm/pages/shrm-china.aspx") > -1) { } Review the laws and regulations that govern overtime in the United States. In May 2016, the Obama administrations DOL issued afinal ruleincreasing the salary threshold from $23,660 to $47,476 per year and imposed automatic updates to the threshold every three years. Additionally, not knowing regulatory priorities can have an impact on budget and resource planning for employers, especially during a time of high inflation and anticipated economic recission. Members may download one copy of our sample forms and templates for your personal use within your organization. Once proposed, stakeholders will have an opportunity to comment before the agency finalizes its rule. On September 24, 2019, the Department of Labor issued its final overtime rule to increase the minimum salary threshold for executive, administrative and professional exemptions from $455 per week ($23,660 annually) to $684 per week ($35,568 annually). These exemptions are commonly referred to as the white-collar or EAP exemptions. The new 2022 rule largely returns to the "economic realities" test. Author: Michael Cardman, XpertHR Senior Legal Editor. On June 21, the Biden administration released the anticipated Spring 2022 Unified Agenda of Regulatory and Deregulatory Actions (Regulatory Agenda), providing the public with a detailed glimpse into the regulatory and deregulatory activities under development across approximately 67 federal departments, agencies and commissions. The federal overtime provisions are contained in the Fair Labor Standards Act (FLSA). On October 11, 2022, the U.S. Department of Labor (DOL) unveiled a new proposed rule that could make it more difficult for workers to be classified as independent contractors under the Fair Labor Standards Act (FLSA). Pay transparency, employee privacy, compassionate leadership and political biases are among this years hot debates, according to labor experts. The Department of Labor remains committed to addressing the issue of misclassification.. Retrieved from, The U.S. Department of Labor has again extended its timeline for proposing a new salary threshold for overtime eligibility, this time to May, according to the agencys. USCIS Modernizing H-1B Requirements and Oversight and Providing Flexibility in the F-1 Program, In May 2023, the Department of Homeland Security (DHS)s United States Citizenship and Immigration Services (USCIS) plans to release an NPRM to amend its regulations governing H-1B specialty occupation workers and F-1 students who are the beneficiaries of timely filed H-1B cap-subject petitions. The NPRM will specifically propose to revise the regulations relating to employer-employee relationship and provide flexibility for start-up entrepreneurs; implement new requirements and guidelines for site visits including in connection with petitions filed by H-1B dependent employers whose basic business information cannot be validated through commercially available data; provide flexibility on the employment start date listed on the petition (in limited circumstances); address cap-gap issues; bolster the H-1B registration process to reduce the possibility of misuse and fraud in the H-1B registration system; and clarify the requirement that an amended or new petition be filed where there are material changes, including by streamlining notification requirements relating to certain worksite changes, among other provisions., ICE Optional Alternative to the Physical Examination Associated With Employment Eligibility Verification (Form I-9), According to the Regulatory Agenda, DHS plans to issue an NPRM in July 2022 to revise employment eligibility verification regulations to allow the Secretary to authorize alternative document examination procedures in certain circumstances or with respect to certain employers.. An HR Advisor is here to help by email, live chat, or phone. enter into or attempt to enter into a noncompete agreement with a worker; maintain a noncompete agreement with a worker; or. "If any of these issues make their way into new regulations in any significant way, litigation is assured.". 96% of members agree: "SHRMs information is very useful to me". p.usa-alert__text {margin-bottom:0!important;} The key labor and employment regulatory actions included in the fall agenda are listed below. Learn more about the Wage and Hour Division. Rather than appeal the judge's decision, which was criticized by many unions and worker advocates, the Trump administration proposed a new rule in 2019 that elevated the overtime wage . The federal overtime provisions are contained in the Fair Labor Standards Act (FLSA). The proposed changes will impact Employers and employees. } An agency within the U.S. Department of Labor, 200 Constitution Ave NW div#block-eoguidanceviewheader .dol-alerts p {padding: 0;margin: 0;} temp_style.textContent = '.ms-rtestate-field > p:first-child.is-empty.d-none, .ms-rtestate-field > .fltter .is-empty.d-none, .ZWSC-cleaned.is-empty.d-none {display:block !important;}'; All rights reserved. Once anticipated in the spring, the proposed rule will recommend how to implement the exemption of bona fide executive, administrative and professional employees from the Fair Labor Standards Act's (FLSA's) minimum wage and overtime requirements. .manual-search ul.usa-list li {max-width:100%;} For questions or additional information, contact Reichenberg atneilreichenberg@yahoo.com. . The U.S. Department of Labor (DOL) recently published its spring regulatory agenda containing a tentative date of October 2022 for a proposed overtime rule. Thank you again for providing me the opportunity to testify on the Department of Labor final overtime rule, and I would be happy to answer any questions that any of the members may have. The proposed rule would provide guidance on classifying workers and seeks to combat employee misclassification. Partner Russell Bruch spoke to HR Today about a proposed US Department of Labor overtime rule expected to lead to increased eligibility for overtime pay. Conversely, there is nothing stopping the DOL from issuing new rules before its target dates, either. The FTC is accepting public comments on the proposed rule until March 10, 2023, and they can be submitted online. The DOL initially planned to issue this new proposal in April 2022. Get the Quickstart Guide for Employers. #block-googletagmanagerfooter .field { padding-bottom:0 !important; } By NAM News Room May 6, 2022 2:45pm. 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